Country Snapshot

Population (2019, millions)¹ 0.9 (974,000)
Population Projections (2030, millions)¹ 1.1
Economically active population in agriculture (as % of Economically active population)12, 2019 93
Capital Djibouti
Surface Area (km²)² 23,200
Weather¹¹ Hottest months, June-August, 31-41°C; coldest month, January, 23-29°C; driest month, June, 1 mm average rainfall; wettest month, March, 25 mm average rainfall
Languages³ Official: French and Arabic – Others: Somali and Afar
Main Religions³ Main: Muslim – Others: Christian
Time⁴ Eastern Africa Time (EAT) +0300 UTC
Driving Orientation⁵ Right Side
Internet Country Code⁶ .dj
Country Calling Code +253
Plug, Socket and Voltage⁷ Type C and E – 220V/50Hz
Currency Franc (DJF)
Exchange Rate (As of 27 January 2019, per USD)⁸ 177.72
GDP at Market Prices (2018, current, billions of USD)⁹ 1.965
GDP Growth (2018, annual %)⁹ 5.96
Average GDP Growth (2014-2018, annual %)⁹ 7.47
GDP per Capita, PPP (2017, current international $)⁹ 1,927
Inflation, Consumer Prices (2018, annual %)⁹ 0.14
Average Inflation, Consumer Prices (2013-2017, annual %)⁹ (0.32)
Total Reserves in Months of Imports (2017)⁹ 6.43

Sources:
¹United Nations Population Division, Department of Economic and Social Affairs.
²COMESA Statistics, COMESTAT Data Hub.
³CIA World Factbook.
⁴Time and Date Portal.
⁵Chartsbin Portal, “Worldwide Driving Orientation by Country”.
⁶Wikipedia, “List of Internet top-level domains”; and, Internet Assigned Numbers Authority, Root Zone Database.
⁷International Electrotechnical Commission, World Plugs.
⁸Banque Centrale de Djibouti.
⁹World Bank, World Development Indicators 2019.
¹¹Economist Intelligence Unit.
¹²AFDB Socio Economic Database.

Reasons to Invest in Djibouti

Source: Djibouti National Investment Promotion Agency.

Population

Population Projections (millions) 

Population (2019) 0.9
Population Projections (2030) 1.1

Source: United Nations Population Division, Department of Economic and Social Affairs.

Population Residing in Urban Areas (%)

Population Projections (2019) 77.9
Percentage of Population Residing in Urban Areas (2030) 79.9

Source: United Nations Population Division, Department of Economic and Social Affairs.

Youth Literacy Rates (2017, %)

Youth Literacy Rate, Population 15-24 Years, Both Sexes 73.23
Youth Literacy Rate, Population 15-24 Years, Female 66.05
Youth Literacy Rate, Population 15-24 Years, Male 80.73

Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.

Expenditure on Education (2010, %)

Government Expenditure on Education as % of GDP 4.49
Education Expenditure as % of Total Government Expenditure 12.32

Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.

Labour

Unemployment (2018, % of Total Labour Force, Modeled ILO Estimate)

Unemployment, Total 11.12
Unemployment, Female 12.02
Unemployment, Male 10.42

Source: World Bank, World Development Indicators 2019.

Labour Force (2017, % of Ages 15+, Modeled ILO Estimate)

Labour Force Participation Rate, Total 62.97
Labour Force Participation Rate, Female 54.81
Labour Force Participation Rate, Male 71.14
Labour Force, Total (number) 425,274

Source: World Bank, World Development Indicators 2019.

Economy Overview

GDP

2014 2015 2016 2017 2018
GDP at Market Prices (current, billions of USD) 1.455 1.633 1.746 1.844 1.965
GDP Growth (annual %) 8.9 9.7 8.7 4.1 5.96

Source: World Bank, World Development Indicators 2019.

Value Added by Sector (% of GDP)

Indicator 2018 2019
Agriculture 4.04 3.96
Manufacturing 3.13 2.99
Industry 26.11 26.42
Services 88.86 88.62
Construction 15.98 16.50
Electricity, gas and water 6.58 6.52
Mining and quarrying 0.42 0.41
Education 0.00 0.00
Finance, real estate and business services 7.55 7.54
Public administration and Defense 22.37 22.17
Health and Social Work 0.00 0.00
Other services 3.41 3.31
Transport, storage and communication 33.56 33.57
Wholesale and retail trade, hotels and restaurants 21.97 22.03

Source: AFDB Socio Economic Database

Trade Profile

Import Partners (Imported Value, thousands, USD)

2014 2015 2016 2017 2018
World 2,589,683 1,743,801 2,737,091 1,585,883 1,753,384
United States of America 1,061,149 662,552 57,169 586,757 512,672
China 73,058 383,340 411,934 235,213 205,292
Indonesia 501 810 44,931 420 183,218
France 111,208 94,023 156,051 179,915 138,061
Ethiopia 69,977 74,761 109,289 101,105 107,338

Source: International Trade Centre COMTRADE Statistics.

Export Partners (Exported Value, thousands, USD)

2014 2015 2016 2017 2018
World 6,175,378 10,554,232 7,065,305 11,750,936 18,990,587
South Africa 15,711 153,729 4,102,820 6,592,483 10,084,468
China 2,534,168 4,796,528 841,752 1,894,866 3,507,881
United Arab Emirates 321,953 798,689 1,343,352
Tanzania 742 1,130 747,030 405,799 1,254,043
Zambia 1,136,844 1,703,815 618,760 691,588 1,093,135

Source: International Trade Centre COMTRADE Statistics.

Djibouti’s Top Import Products (USD ‘000)

Chapter Description 2014 2015 2016 2017 2018
All products 2,589,683 1,743,801 2,737,091 1,585,883  1,753,384
88 Aircraft, spacecraft, and parts thereof 677,293 211,155 19,563 533,094 296,156
73 Articles of iron or steel 7,026 76,701 65,665 45,809 255,885
84 Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof 200,621 81,761 141,421 114,974 220,750
85 Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles 144,410 456,712 123,098 137,199 144,277
27 Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes 168,240 162,474 246,363 120,882 139,423

Source: COMSTAT database

Djibouti’s Top Export Products (USD ‘000)

Chapter Description 2014 2015 2016 2017 2018
All products 1,323,453 667,195  2,029,119 437,970 971,640
87 Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof 192,968 32,973 511,552 32,875 638,068
27 Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes 682,725 93,038 82,474 87,094 99,720
85 Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles 8,057 91,732 205,833 101,084 84,446
84 Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof 3,057 11,271 74,087 130,790 84,186
88 Aircraft, spacecraft, and parts thereof 382,492 149,418 101,969 29,901 30,442

Source: COMSTAT database

Investment Profile

FDI Inflows (millions of USD)

Year 2014 2015 2016 2017 2018
FDI Inflows 153 124 160 165 265

Source: United Nations Conference on Trade and Development, World Investment Report 2019

FDI Inward Stock (millions of USD)

Year 2014 2015 2016 2017 2018
FDI Inward Stock 1,505 1,629 1,789 1,954 2,219

Source: United Nations Conference on Trade and Development, World Investment Report 2019

FDI Inflows Main Source Countries (in terms of number of projects)

UAE, United States, China, France, South Africa, Tanzania, Bahrain, Canada, Denmark, and Germany.

Source: Financial Times, fDi Markets, 2018.

 

FDI Inflows Main Sectors (in terms of number of projects)

Business Services, Transportation, Financial Services, Warehousing & Storage, Renewable energy, Communications, Real Estate, Coal, Oil and Natural Gas, Hotels & Tourism, and Chemicals.

Source: Financial Times, fDi Markets, 2018.

 

FDI Inflows Main Companies (in terms of number of projects)

Exim Bank (Tanzania), Black Rhino, AAE-1 Consortium, Ayla Hotels and Resorts, United Trademark and Patent Services, Silk Road International Bank (SIB), Fotowatio Renewable Ventures (FRV), China Merchants Group, Stereau, and Industrial Maintenance International.

Source: Financial Times, fDi Markets, 2018.

Doing Business

Overall Doing Business Ranking

2020 112/190
2019 99/190

Source: World Bank, Doing Business, 2020

Starting a Business

2020 Rank 112/190
Procedures (number) 6
Time (days) 14
Cost (% of income per capita*) 39.7
Paid-in Minimum Capital (% of income per capita*) 0.0*GNI per capita used: USD 280

Source: World Bank, Doing Business, 2020

Paying Taxes

Paying Taxes

2020 Rank 133/190
Payments (number per year) 35
Time (hours per year) 76
Total Tax Rate (% of profit) 37.9
Profit Tax (% of profit) 17.7
Labour Tax and Contributions (% of profit) 17.7
Other Taxes (% of profit) 2.6

Source: World Bank, Doing Business, 2020

Trading Across Borders

2020 Rank 147/190
Time to Export: Border Compliance (hours) 72
Cost to Export: Border Compliance (USD) 605
Time to Export: Documentary Compliance (hours) 60
Cost to Export: Documentary Compliance (USD) 95
Time to Import: Border Compliance (hours) 118
Cost to Import: Border Compliance (USD) 1055
Time to Import: Documentary Compliance (hours) 50
Cost to Import: Documentary Compliance (USD)

Assumptions

Source: World Bank, Doing Business, 2020

Investment Regime

Legal Framework

Investment Code – LAW N°58/AN/94/3-rd.

Key guarantees in terms of investment protection include:

Source: COMESA Regional Investment Agency, Investors Guide to Doing Business in Djibouti, NIPA.

Investment Incentives

Minimum investment required:

REGIM A:

REGIM B:

Free Zone:

Although the term Free Zone only applied to the port, Djibouti now levies customs duties on most commodities. The 42-acre Djibouti Free Zone has been operational since 2004 and can house up to 100 companies. In July 2012, the government approved a new 57 hectares free zone (Jabanaas Free Zone) just outside of the capital.

Conditions: the company has to export at least 80% of its production. The benefits of this regime remain valid for a period of 25 years and can be renewed

Type of benefits:

Source: Deloitte, Guide to Fiscal Information, Key Economies in Africa 2018

Country Snapshot

Population (2019, millions)¹ 0.9 (974,000)
Population Projections (2030, millions)¹ 1.1
Economically active population in agriculture (as % of Economically active population)12, 2019 93
Capital Djibouti
Surface Area (km²)² 23,200
Weather¹¹ Hottest months, June-August, 31-41°C; coldest month, January, 23-29°C; driest month, June, 1 mm average rainfall; wettest month, March, 25 mm average rainfall
Languages³ Official: French and Arabic – Others: Somali and Afar
Main Religions³ Main: Muslim – Others: Christian
Time⁴ Eastern Africa Time (EAT) +0300 UTC
Driving Orientation⁵ Right Side
Internet Country Code⁶ .dj
Country Calling Code +253
Plug, Socket and Voltage⁷ Type C and E – 220V/50Hz
Currency Franc (DJF)
Exchange Rate (As of 27 January 2019, per USD)⁸ 177.72
GDP at Market Prices (2018, current, billions of USD)⁹ 1.965
GDP Growth (2018, annual %)⁹ 5.96
Average GDP Growth (2014-2018, annual %)⁹ 7.47
GDP per Capita, PPP (2017, current international $)⁹ 1,927
Inflation, Consumer Prices (2018, annual %)⁹ 0.14
Average Inflation, Consumer Prices (2013-2017, annual %)⁹ (0.32)
Total Reserves in Months of Imports (2017)⁹ 6.43

Sources:
¹United Nations Population Division, Department of Economic and Social Affairs.
²COMESA Statistics, COMESTAT Data Hub.
³CIA World Factbook.
⁴Time and Date Portal.
⁵Chartsbin Portal, “Worldwide Driving Orientation by Country”.
⁶Wikipedia, “List of Internet top-level domains”; and, Internet Assigned Numbers Authority, Root Zone Database.
⁷International Electrotechnical Commission, World Plugs.
⁸Banque Centrale de Djibouti.
⁹World Bank, World Development Indicators 2019.
¹¹Economist Intelligence Unit.
¹²AFDB Socio Economic Database.

Reasons to Invest in Djibouti

Source: Djibouti National Investment Promotion Agency.

Population

Population Projections (millions) 

Population (2019) 0.9
Population Projections (2030) 1.1

Source: United Nations Population Division, Department of Economic and Social Affairs.

Population Residing in Urban Areas (%)

Population Projections (2019) 77.9
Percentage of Population Residing in Urban Areas (2030) 79.9

Source: United Nations Population Division, Department of Economic and Social Affairs.

Youth Literacy Rates (2017, %)

Youth Literacy Rate, Population 15-24 Years, Both Sexes 73.23
Youth Literacy Rate, Population 15-24 Years, Female 66.05
Youth Literacy Rate, Population 15-24 Years, Male 80.73

Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.

Expenditure on Education (2010, %)

Government Expenditure on Education as % of GDP 4.49
Education Expenditure as % of Total Government Expenditure 12.32

Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.

Labour

Unemployment (2018, % of Total Labour Force, Modeled ILO Estimate)

Unemployment, Total 11.12
Unemployment, Female 12.02
Unemployment, Male 10.42

Source: World Bank, World Development Indicators 2019.

Labour Force (2017, % of Ages 15+, Modeled ILO Estimate)

Labour Force Participation Rate, Total 62.97
Labour Force Participation Rate, Female 54.81
Labour Force Participation Rate, Male 71.14
Labour Force, Total (number) 425,274

Source: World Bank, World Development Indicators 2019.

Economy Overview

GDP

2014 2015 2016 2017 2018
GDP at Market Prices (current, billions of USD) 1.455 1.633 1.746 1.844 1.965
GDP Growth (annual %) 8.9 9.7 8.7 4.1 5.96

Source: World Bank, World Development Indicators 2019.

Value Added by Sector (% of GDP)

Indicator 2018 2019
Agriculture 4.04 3.96
Manufacturing 3.13 2.99
Industry 26.11 26.42
Services 88.86 88.62
Construction 15.98 16.50
Electricity, gas and water 6.58 6.52
Mining and quarrying 0.42 0.41
Education 0.00 0.00
Finance, real estate and business services 7.55 7.54
Public administration and Defense 22.37 22.17
Health and Social Work 0.00 0.00
Other services 3.41 3.31
Transport, storage and communication 33.56 33.57
Wholesale and retail trade, hotels and restaurants 21.97 22.03

Source: AFDB Socio Economic Database

Trade Profile

Import Partners (Imported Value, thousands, USD)

2014 2015 2016 2017 2018
World 2,589,683 1,743,801 2,737,091 1,585,883 1,753,384
United States of America 1,061,149 662,552 57,169 586,757 512,672
China 73,058 383,340 411,934 235,213 205,292
Indonesia 501 810 44,931 420 183,218
France 111,208 94,023 156,051 179,915 138,061
Ethiopia 69,977 74,761 109,289 101,105 107,338

Source: International Trade Centre COMTRADE Statistics.

Export Partners (Exported Value, thousands, USD)

2014 2015 2016 2017 2018
World 6,175,378 10,554,232 7,065,305 11,750,936 18,990,587
South Africa 15,711 153,729 4,102,820 6,592,483 10,084,468
China 2,534,168 4,796,528 841,752 1,894,866 3,507,881
United Arab Emirates 321,953 798,689 1,343,352
Tanzania 742 1,130 747,030 405,799 1,254,043
Zambia 1,136,844 1,703,815 618,760 691,588 1,093,135

Source: International Trade Centre COMTRADE Statistics.

Djibouti’s Top Import Products (USD ‘000)

Chapter Description 2014 2015 2016 2017 2018
All products 2,589,683 1,743,801 2,737,091 1,585,883  1,753,384
88 Aircraft, spacecraft, and parts thereof 677,293 211,155 19,563 533,094 296,156
73 Articles of iron or steel 7,026 76,701 65,665 45,809 255,885
84 Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof 200,621 81,761 141,421 114,974 220,750
85 Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles 144,410 456,712 123,098 137,199 144,277
27 Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes 168,240 162,474 246,363 120,882 139,423

Source: COMSTAT database

Djibouti’s Top Export Products (USD ‘000)

Chapter Description 2014 2015 2016 2017 2018
All products 1,323,453 667,195  2,029,119 437,970 971,640
87 Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof 192,968 32,973 511,552 32,875 638,068
27 Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes 682,725 93,038 82,474 87,094 99,720
85 Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles 8,057 91,732 205,833 101,084 84,446
84 Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof 3,057 11,271 74,087 130,790 84,186
88 Aircraft, spacecraft, and parts thereof 382,492 149,418 101,969 29,901 30,442

Source: COMSTAT database

Investment Profile

FDI Inflows (millions of USD)

Year 2014 2015 2016 2017 2018
FDI Inflows 153 124 160 165 265

Source: United Nations Conference on Trade and Development, World Investment Report 2019

FDI Inward Stock (millions of USD)

Year 2014 2015 2016 2017 2018
FDI Inward Stock 1,505 1,629 1,789 1,954 2,219

Source: United Nations Conference on Trade and Development, World Investment Report 2019

FDI Inflows Main Source Countries (in terms of number of projects)

UAE, United States, China, France, South Africa, Tanzania, Bahrain, Canada, Denmark, and Germany.

Source: Financial Times, fDi Markets, 2018.

 

FDI Inflows Main Sectors (in terms of number of projects)

Business Services, Transportation, Financial Services, Warehousing & Storage, Renewable energy, Communications, Real Estate, Coal, Oil and Natural Gas, Hotels & Tourism, and Chemicals.

Source: Financial Times, fDi Markets, 2018.

 

FDI Inflows Main Companies (in terms of number of projects)

Exim Bank (Tanzania), Black Rhino, AAE-1 Consortium, Ayla Hotels and Resorts, United Trademark and Patent Services, Silk Road International Bank (SIB), Fotowatio Renewable Ventures (FRV), China Merchants Group, Stereau, and Industrial Maintenance International.

Source: Financial Times, fDi Markets, 2018.

Doing Business

Overall Doing Business Ranking

2020 112/190
2019 99/190

Source: World Bank, Doing Business, 2020

Starting a Business

2020 Rank 112/190
Procedures (number) 6
Time (days) 14
Cost (% of income per capita*) 39.7
Paid-in Minimum Capital (% of income per capita*) 0.0*GNI per capita used: USD 280

Source: World Bank, Doing Business, 2020

Paying Taxes

Paying Taxes

2020 Rank 133/190
Payments (number per year) 35
Time (hours per year) 76
Total Tax Rate (% of profit) 37.9
Profit Tax (% of profit) 17.7
Labour Tax and Contributions (% of profit) 17.7
Other Taxes (% of profit) 2.6

Source: World Bank, Doing Business, 2020

Trading Across Borders

2020 Rank 147/190
Time to Export: Border Compliance (hours) 72
Cost to Export: Border Compliance (USD) 605
Time to Export: Documentary Compliance (hours) 60
Cost to Export: Documentary Compliance (USD) 95
Time to Import: Border Compliance (hours) 118
Cost to Import: Border Compliance (USD) 1055
Time to Import: Documentary Compliance (hours) 50
Cost to Import: Documentary Compliance (USD)

Assumptions

  • It is assumed that shipment travels from a warehouse in the largest business city of the exporting economy to a warehouse in the largest business city of the importing economy.
  • It is assumed that each economy imports a standardized shipment of 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed that each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product.
  • A shipment is a unit of trade. Export shipments do not necessarily need to be containerized, while import shipments of auto parts are assumed to be containerized.
  • Shipping cost based on weight is assumed to be greater than shipping cost based on volume.
  • If government fees are determined by the value of the shipment, the value is assumed to be $50,000.
  • The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, airport or land border crossing.
  • Time is measured in hours, and 1 day is 24 hours.
  • Costs do not include tariffs.

Source: World Bank, Doing Business, 2020

Investment Regime

Legal Framework

Investment Code – LAW N°58/AN/94/3-rd.

Key guarantees in terms of investment protection include:

Source: COMESA Regional Investment Agency, Investors Guide to Doing Business in Djibouti, NIPA.

Investment Incentives

Minimum investment required:

REGIM A:

REGIM B:

Free Zone:

Although the term Free Zone only applied to the port, Djibouti now levies customs duties on most commodities. The 42-acre Djibouti Free Zone has been operational since 2004 and can house up to 100 companies. In July 2012, the government approved a new 57 hectares free zone (Jabanaas Free Zone) just outside of the capital.

Conditions: the company has to export at least 80% of its production. The benefits of this regime remain valid for a period of 25 years and can be renewed

Type of benefits:

Source: Deloitte, Guide to Fiscal Information, Key Economies in Africa 2018